SP 500 climbed above 4,000 on risk appetite improvement and higher US bond yields


  • The S&P 500, the Dow Jones, and the Nasdaq 100 advanced sharply in the day.
  • US Treasury bond yields climbed ahead of the FOMC’s meeting.
  • Investors focus shifted toward the Federal Reserve’s monetary policy decision.

Wall Street finished the day with gains, spurred by optimism in the financial markets, which triggered gains in the S&P 500, the Dow Jones, and the heavy-tech Nasdaq Composite. As the New York session ended, the S&P 500 gained 1.3%, 4,002.87, while the Dow Jones climbed 0.98%, 32,560.60. The Nasdaq Composite led the pack, up 1.58%, at 11,860.11.

US equities rose, sponsored by a risk-on impulse

Investors had shrugged off the banking system’s woes. On Tuesday, the Secretary of Treasury Janet Yellen stated that if regulators perceive a potential run on the banking system, the federal government could intervene to safeguard depositors at more banks. Data-wise, Existing Home Sales in the United States (US) rose above the prior’s month figures as lower mortgages boosted sales. Existing Home Sales in February rose by 14.5% MoM, crushing the 5% consensus, and ended a 12-month run of declines in sales.

Aside from this, US Treasury bond yields jumped, with 2s and 10s gaining 18 and 12 basis points, respectively, ahead of tomorrow’s Federal Reserve’s decision. The US 2-year Treasury bond yield is 4.179%, while the 10-year rate is 3.607%.

Traders focus shifted toward the US Federal Reserve monetary policy decision, with investors expecting a 25 bps rate hike by the Fed. However, tomorrow’s spotlight would be Fed Chair Jerome Powell’s press conference, which would be scrutinized by investors expecting Powell to deliver any forward guidance.

Sector-wise, Energy, Consumer Discretionary, and Financials led the pack, each up 3.45%, 2.71%, and 2.54%. Contrarily, Utilities, Real Estate, and Consumer Staples finished with losses of 2.05%, 0.66%, and 0.12%m respectively.

In the FX space, the US Dollar Index (DXY), a measure that tracks the buck’s value against a basket of six currencies, lost 0.09%, down at 103.214, after hitting a YTD low of 103.000.

What to watch?

The US calendar will feature the Federal Reserve Open Market Committee (FOMC) monetary policy meeting, alongside the Fed Chairman Jerome Powell press conference, at around 18:00 and 18:30 GMT.

S&P 500 Daily chart

S&P 500 Daily chart

SP 500

Overview
Today last price 4003.96
Today Daily Change 51.18
Today Daily Change % 1.29
Today daily open 3952.78
 
Trends
Daily SMA20 3959.26
Daily SMA50 4014.62
Daily SMA100 3961.08
Daily SMA200 3929.84
 
Levels
Previous Daily High 3954.98
Previous Daily Low 3865.6
Previous Weekly High 3971.64
Previous Weekly Low 3807.12
Previous Monthly High 4192.63
Previous Monthly Low 3940.95
Daily Fibonacci 38.2% 3920.84
Daily Fibonacci 61.8% 3899.74
Daily Pivot Point S1 3893.93
Daily Pivot Point S2 3835.07
Daily Pivot Point S3 3804.55
Daily Pivot Point R1 3983.31
Daily Pivot Point R2 4013.83
Daily Pivot Point R3 4072.69

 

 

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